Know The Cost of Buying A Home

If You Have A Mortgage Then You Have Closing Costs 

Okay, you've found the Beach home of your dreams.  You've determined how much you can afford because you've already been pre-approved by your lender, and your offer has been accepted.  But wait.  If you're financing the purchase, like almost everyone does, you'll actually be paying more than the final sale price of the home at closing. 

 Your Loan’s Terms Determine Your Closing Cost 

Many buyers don't stop to think about how much they'll really be paying for their home by the time they've reached the final payment.  It's worth considering, and it makes it evident that you should shop around and get the best loan terms possible.  You should pay extra special attention to the interest rate you are being quoted and get expert advice on whether you should lock in that rate.

 Your Purchase Offer’s Terms Also Determine Your Closing Cost 

Closing cost will be due on top of your down payment at the time of closing.   Your closing cost will be determined by the loan terms you agreed to and the terms of the purchase offer you submitted. 

 Your Realtor Can Keep Your Closing Cost Down 

It is always best to discuss your financial situation with your Jacksonville Beach Realtor.  Your Realtor can structure your offer to include items such as Seller credits to keep your cash out of pocket to a minimum.  You can even work in a “Seller Buy-Down” to get your mortgage payments lower for the first few years if you do the right negotiating and have the right lender.

 Your Realtor Can Also Recommend Trustworthy Lenders 

In addition, your trusted local real estate agent can provide mortgage information, illustrate different financing options, and even recommend lenders suited to your needs.  With literally hundreds, if not thousands, of options available, it's helpful to begin with the basic facts to help you whittle down your choices.  Even if you have bad credit there is a chance you can get financing if you start working on it now.

 You Will Pay PMI With Less Than 20% Down Payment 

Determine how much is available for a down payment.  If you're putting up less than 20%, you'll need a guarantee that often comes in the form of PMI (private mortgage insurance).  This will add to the overall cost of your loan, at least until you've paid off a significant percentage.  However, not everybody agrees on whether putting 20% down is the best choice or not even if you do have the money.

 Get An Estimate of Buyer Closing Cost From Your Realtor 

Again, discuss your loan options with your real estate agent before you make any offers, in order to avoid unpleasant delays and unexpected expenses.  Your real estate agent will provide you with a closing cost estimate sheet based on average lender fees and closing cost that will be charged to you.  This will be a good guide to your cost until you have met with your lender.

Good Luck and Good Home Selling Jacksonville!

Carey & Karrie Frankel

Phyllis Frankel Realty Group